Migration is boosting spending and forecast to brighten the economic prospects for the main centres, led by Auckland.<\/p>\n
Infometrics forecasts the Reserve Bank would begin cutting back on the official cash rate (OCR) from August, as population growth eased labour market pressures and wage growth, driving annual inflation back to within its 1-to-3 percent target.<\/p>\n
The economic think tank estimated annual gross domestic production (GDP) will average 2 percent in 2024 and 2025, which compared with its October forecast of 1.2 percent annual economic growth.<\/p>\n
“Interest rate cuts will be gradual, taking the OCR to 4 percent by the end of 2025, but the easing will help foster more positive trends in spending and investment activity,” Infometrics chief forecaster Gareth Kiernan said.<\/p>\n
He said the revised the outlook was supported by high net migration that was expected to take longer to retreat from current record levels, as well as inflation falling faster than assumed in the October forecast.<\/p>\n
Net migration was set to ease from its late-2023 annual peak of 132,300, with inflows moderating to about 80,000 at the end of this year.<\/p>\n
rnz<\/p>\n","protected":false},"excerpt":{"rendered":"
Migration is boosting spending and forecast to brighten the economic prospects for the main centres, led by Auckland. Infometrics forecasts the Reserve Bank would begin cutting back on the official cash rate (OCR) from August, as population growth eased labour market pressures and wage growth, driving annual inflation back to within its 1-to-3 percent target. […]<\/p>\n","protected":false},"author":6,"featured_media":9139,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[222,174],"tags":[],"class_list":["post-9138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","category-nz-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/9138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9138"}],"version-history":[{"count":1,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/9138\/revisions"}],"predecessor-version":[{"id":9140,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/9138\/revisions\/9140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/media\/9139"}],"wp:attachment":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}